NRS 319.145 Designation
as housing credit agency; authority to administer HOME Investment Partnership
Act; duty to administer program to increase efficiency in use of energy in
dwellings owned or occupied by persons of low income.

1. There exists a serious shortage of
decent, safe and sanitary housing in this State available to persons and
families of low and moderate income and that many other persons and families
are unable to secure or afford, without assistance, decent, safe and sanitary
housing.

2. This condition is conducive to disease,
crime, environmental decline and poverty, impairs the economic value of large
areas, which are characterized by depreciated value, impaired investments,
reduced capacity to pay taxes, and lack of new development to meet the needs of
area residents, and is a menace to the health, safety, morals and welfare of
the residents of this State.

3. This condition results in a loss of
population and further deterioration accompanied by added costs to communities
for creation of new public facilities and services elsewhere.

4. It is difficult and uneconomic for
individual owners independently to remedy this condition.

5. One major cause of this condition has
been recurrent shortages of money from private sources, and such shortages have
contributed to reductions in construction of new residential housing and have
made the sale and purchase of existing residential housing a virtual
impossibility in certain parts of the State. Other causes of this condition
include increases in rental values and decreases in the availability of federal
funding for housing.

6. The ordinary operations of private enterprise
have not in the past corrected these conditions.

7. The reduction in housing construction
has caused substantial unemployment and underemployment in the construction
industry which, together with the shortage of affordable housing, results in
hardships, wastes human resources, increases the public assistance burdens of
the State, impairs the security of family life, impedes the economic and
physical development of the State and adversely affects the welfare, health and
prosperity of all the people of this State.

8. A stable supply of adequate money for
the financing and provision of other assistance to obtain housing is required
to encourage new housing in an orderly and sustained manner, to increase the
availability of affordable housing, and thereby to reduce these detrimental
results.

9. It is necessary to create a Housing
Division in the Department of Business and Industry to encourage the investment
of private capital and stimulate the financing of housing through the use of
public financing to provide mortgage loans and to make loans to and purchase
mortgage loans from mortgage lenders, and to perform any other function
authorized by this chapter.

10. It is appropriate for the Housing
Division to issue obligations regardless of their characterization for the
purposes of federal income taxation by the United States Department of the
Treasury.

11. All of the purposes set forth in this
chapter are public purposes and uses for which public money may be borrowed,
expended, advanced, loaned or granted.

Ê This chapter
must be liberally construed to accomplish the public purposes and alleviate the
detrimental conditions set forth in this section.

NRS 319.045“Collateralized mortgage obligation” defined.“Collateralized mortgage obligation” means an
obligation which represents an interest in a loan or a group of loans or which
may be issued by the owner of one or more loans and secured by an assignment of
or an interest in the principal or interest payable from such a loan or loans
or by an interest in the underlying loan.

NRS 319.060“Eligible family” defined.“Eligible
family” means a person or family, selected without regard to race, creed,
national origin or sex, determined by the Division to require such assistance
as is made available by this chapter on account of insufficient personal or
family income after taking into consideration, without limitation, such factors
as:

1. The amount of the total income of that
person or family available for housing needs;

2. The size of the family;

3. The cost and condition of housing
facilities available;

4. The ability of the person or family to
compete successfully in the normal private housing market and to pay the
amounts at which private enterprise is providing decent, safe and sanitary
housing;

5. If appropriate, standards established
for various federal programs determining eligibility based on income of those
persons and families; and

6. Service in the Armed Forces of the
United States with a minimum of 90 days on active duty at some time between:

(a) April 21, 1898, and June 15, 1903;

(b) April 6, 1917, and November 11, 1918;

(c) December 7, 1941, and December 31, 1946;

(d) June 25, 1950, and January 31, 1955; or

(e) January 1, 1961, and May 7, 1975,

Ê and at least
2 years’ continuous residence in Nevada immediately preceding any application
for assistance under this chapter.

NRS 319.070“Governmental agency” defined.“Governmental
agency” means the United States of America, this state or any department,
division, public corporation, public agency, political subdivision or other
public instrumentality of either.

(Added to NRS by 1975, 626)

NRS 319.090“Lending institution” defined.“Lending
institution” means any bank or trust company, Federal National Mortgage
Association approved mortgage banker, national banking association, savings and
loan association or other financial institution or governmental agency of the
United States which customarily provides service or otherwise aids in the
financing of mortgages located in this state.

(Added to NRS by 1975, 626)

NRS 319.100“Mortgage” defined.“Mortgage”
means a mortgage deed, deed of trust or other instrument which constitutes a
lien on real property in fee simple or on a leasehold under a lease whose
remaining term, at the time such mortgage is acquired, does not expire for at
least that number of years beyond the maturity date of the obligation secured
by such mortgage as is established by the Division as necessary to protect its
interest as mortgagee.

(Added to NRS by 1975, 627)

NRS 319.110“Mortgage loan” defined.“Mortgage
loan” means an interest-bearing obligation secured by a mortgage on land and
improvements in this state.

(Added to NRS by 1975, 627)

NRS 319.115“Person with a disability” defined.“Person
with a disability” has the meaning ascribed to it in NRS 433.5473.

NRS 319.120“Real property” defined.“Real
property” means all lands, including rights to space above the lands,
improvements and fixtures on the lands and property of any nature appurtenant
to or used in connection with the lands, and every estate, interest and right,
legal or equitable, in the lands, including terms of years and liens by way of
judgment, mortgage or otherwise and the indebtedness secured by such liens.

(Added to NRS by 1975, 627; A 1977, 50)

NRS 319.130“Residential housing” defined.“Residential
housing” means one or more new or existing residential dwelling units financed
pursuant to the provisions of this chapter for the primary purpose of providing
decent, safe and sanitary dwelling accommodations for eligible families in need
of housing, including any buildings, manufactured homes, mobile homes, mobile
home parks, land, improvements, equipment, facilities, other real or personal
property, or other related nonhousing facilities which are necessary,
convenient or desirable in connection therewith, and including but not limited
to streets, sewers, utilities, parks, site preparation, landscaping and other
nonhousing facilities such as administrative, community, transportation,
health, recreational, educational, commercial, retail, welfare and public
facilities which the Division determines improve the quality of the residential
living for eligible families.

1. Has been approved by the Division to acquire,
own, construct, rehabilitate, operate, lease, manage or maintain a housing
project; and

2. Except for a state agency or
municipality, has agreed to subject itself to regulation by the Division.

(Added to NRS by 1977, 195)

NRS 319.140General powers and duties of Division; audit; exemption from
State Purchasing Act.

1. The Division shall administer the
provisions of this chapter. The Administrator may adopt, amend or rescind
regulations, consistent with the provisions of this chapter, appropriate to
carry out its purposes.

2. The Administrator may make copies of
all proceedings and other records and documents of the Division and issue
certificates under the seal of the Division to the effect that the copies are
true copies, and all persons dealing with the Division may rely upon such
certificates.

3. The Division has perpetual succession,
subject to termination in accordance with statute, and may:

(b) Adopt an official seal and alter the same at
the pleasure of the Division;

(c) Maintain such offices at any place or places
within the State as it determines necessary to carry out the provisions of this
chapter;

(d) Maintain records, proceedings and documents
of the Division, subject to chapters 239, 239A and 239B
of NRS;

(e) Develop or purchase, lease or otherwise
acquire one or more information systems that the Division determines are
necessary or convenient for the exercise of its powers and duties pursuant to
this chapter and acquire any consulting, support or other service for such
information systems;

(f) Make and execute contracts and all other
instruments necessary or convenient for the exercise of its powers and
functions pursuant to this chapter with any governmental agency, private
corporation or other entity, or natural person;

(g) Enter into agreements or other transactions
with, and accept grants from and cooperate with, any governmental agency or
other source in furtherance of the purposes of this chapter;

(h) Acquire real or personal property or any
interest therein, by gift, purchase, foreclosure, deed in lieu of foreclosure,
lease, option or otherwise;

(i) Hold, sell, assign, lease, encumber,
mortgage, release or otherwise dispose of any real or personal property or any
interest therein, by public or private sale, with or without public bidding,
notwithstanding any other provision of law;

(j) Employ or contract for the services of
attorneys, accountants, financial experts and any other advisers, employees,
consultants and agents as the Administrator may determine to be necessary;

(k) Create or cause to be created legal entities,
including nonprofit corporations, grantor trusts and other legal entities,
which the Division determines are necessary or convenient for the exercise of
its powers and duties pursuant to this chapter, provided, however, that the
issuance of bonds, notes or other evidence of indebtedness by any legal entity
controlled by the Division is subject to the approval of the State Board of
Finance;

(l) Provide advice, technical information, training
and educational services related to the development of housing, building
technologies and related fields;

(m) Conduct research, make grants, and promote
the development of housing, building technologies and related fields; and

(n) Do any and all things necessary or
appropriate to carry out its purposes and exercise the powers expressly granted
pursuant to this chapter.

4. The Division shall cause an audit of
its books and accounts to be made at least once in each fiscal year by a
certified public accountant. The certified public accountant may audit the
Division’s books and accounts for consecutive audit periods as requested by the
Division.

2. The database must include, without
limitation, the compilation and analysis of demographic, economic and housing
data from a variety of sources that:

(a) Provides for an annual assessment of the
affordable housing market at the city and county level, including data relating
to housing units, age of housing, rental rates and rental vacancy rates, new
home sales and resale of homes, new construction permits, mobile homes, lots
available for mobile homes and conversions of multifamily condominiums;

(b) Addresses the housing needs of various
population groups in Nevada, such as households that rent, homeowners, elderly
households, veterans, persons with disabilities or special needs, homeless
persons, recovering drug abusers, persons suffering from mental health ailments
and victims of domestic violence, with each group distinguished to show the
percentage of the population group at different income levels, and a
determination of the number of households within each special-needs group
experiencing housing costs greater than 50 percent of their income,
overcrowding or substandard housing;

(c) Contains an estimate of the number and
condition of subsidized and other low-income housing units at the county level
and the identification of any subsidized units that are forecast to convert to
market-rate units within a 2-year planning period;

(d) Provides a demographic and economic overview
by local and county jurisdiction, if feasible, for the population of Nevada,
including age, race and ethnicity, household size, migration, current and
forecast employment, household income and a summary relating to the effects of
demographics and economic factors on housing demand;

(e) Provides the number of housing units
available to a victim of domestic violence from any housing authority, as
defined in NRS 315.021, and from
participation in the program of housing assistance pursuant to section 8 of the
United States Housing Act of 1937, 42 U.S.C. § 1437f; and

(f) Provides the number of terminations of
victims of domestic violence in this State from the program of housing
assistance pursuant to section 8 of the United States Housing Act of 1937, 42
U.S.C. § 1437f.

3. The costs of creating and maintaining
the database:

(a) Must be paid from the Account for Low-Income
Housing created by NRS 319.500; and

NRS 319.145Designation as housing credit agency; authority to administer
HOME Investment Partnership Act; duty to administer program to increase
efficiency in use of energy in dwellings owned or occupied by persons of low income.

1. The Division is hereby designated as
the housing credit agency for the State of Nevada, as that term is defined in
26 U.S.C. § 42(h)(7)(A), for the purpose of allocating and distributing credits
for low-income housing pursuant to 26 U.S.C. § 42.

2. The Division:

(a) May adopt regulations establishing procedures
necessary for the proper allocation and distribution of credits for low-income
housing pursuant to 26 U.S.C. § 42; and

(b) Shall exercise all powers necessary to
administer the allocation and distribution of those credits.

3. The Division may act for the State of
Nevada as the agency to facilitate the state’s designation as a participating
jurisdiction in the HOME Investment Partnership Act (42 U.S.C. §§ 12701 et
seq.). Upon receiving such a designation, the Division may exercise all powers
necessary to administer the program.

4. The Division shall administer the
program established to increase the efficiency with which energy is used in
dwellings owned or occupied by persons of low income pursuant to 42 U.S.C. §§
6861 et seq.

1. The Division shall certify an assisted
living facility for the purpose of providing services pursuant to the
provisions of the home and community-based services waiver which are amended
pursuant to NRS 422.2708 if the
facility:

NRS 319.167Division may enter into instruments, agreements and other
transactions for certain purposes.

1. Upon the approval of the State Board of
Finance, the Division may enter into instruments, agreements and other such
transactions for one or more of the following purposes:

(a) Reducing or modifying the amount or duration
of any payment, interest rate, spread or similar risk;

(b) Lowering the cost of borrowing when used in
combination with the issuance or carrying of bonds or investments; or

(c) Enhancing the relationship between risk and
return with respect to the programs of the Division for lending or investment
or any portion thereof.

2. In entering into such instruments,
agreements or other such transactions, the Division shall consider the
creditworthiness of the counterparties and other relevant criteria relating to
the objectives of the programs of the Division.

NRS 319.170Funds and accounts; investments and deposits.Except as otherwise provided in NRS 319.500, the Division may:

1. Establish such funds or accounts as may
be necessary or desirable for furtherance of the purposes of this chapter.

2. Invest or deposit its money, subject to
any agreement with bondholders or noteholders, and is not required to keep any
of its money in the State Treasury. The provisions of chapters 355 and 356
of NRS do not apply to such investments or deposits.

NRS 319.171Investment in collateralized mortgage obligations or trusts.Except as otherwise provided in NRS 319.500, the Division may invest its money in
collateralized mortgage obligations or in trusts created to finance, acquire or
invest in collateralized mortgage obligations if the collateralized mortgage
obligations or trusts so created are:

1. In furtherance of the purposes of the
Division; and

2. Rated within one of the top three rating
categories of a national rating service at the time the investment is made.

1. There is hereby created an Advisory
Committee on Housing to review and provide to the Director of the Department of
Business and Industry and the Administrator advice, recommendations and other commentary
regarding:

(a) The investment of money or issuance of
obligations by the Division.

(b) The development of new programs or the
improvement of existing programs of the Division.

(c) The improvement of policies and procedures of
the Division, including those relating to the dissemination of relevant
information to persons who participate in or are otherwise interested in
programs of the Division.

(d) The administration of the Account for
Low-Income Housing.

(e) Any other matters referred to the Advisory
Committee by the Director or Administrator.

2. The Advisory Committee consists of the
Director of the Department of Business and Industry or his or her
representative, and eight members appointed by the Director. The Director shall
appoint to the Advisory Committee:

(a) One representative of an association of
mortgage bankers in this State, selected from a list of names submitted to the
Director by that association.

(b) One representative of persons engaged in
residential construction in this State.

(c) One representative of banks or savings and
loan associations in this State who is knowledgeable about making mortgage
loans.

(d) One member who is knowledgeable about the
sale and marketing or the management of real property in this State.

(e) One member who is knowledgeable about the
development or management of nonprofit housing in this State.

(f) One member who is knowledgeable about housing
programs sponsored, administered or supported by local governments in this
State.

(g) One member who is knowledgeable about federal
housing programs administered by the Division.

(h) One member who is an advocate of affordable
housing.

Ê The members
of the Advisory Committee are not entitled to any additional compensation for
their service in that capacity.

3. The Director of the Department of
Business and Industry or his or her representative shall serve as the Chair of
the Advisory Committee. The Advisory Committee shall meet at least once each
calendar quarter, and at the call of the Chair or upon the written request of
the Administrator or a majority of the members of the Committee.

4. The Administrator shall submit annually
to the Advisory Committee for its review, comment and recommendations a work
plan for the activities of the Division for the succeeding calendar year. The
work plan must include:

(a) The expected needs for financing and
anticipated demand for tax credits and sources of funding for each of the
programs administered by the Division.

(b) Strategies for meeting those needs and demands.

(c) A plan for resolving any anticipated problems
in carrying out those strategies.

(d) A plan for the allocation of the resources of
the Division, including the allotment of its employees’ time, to carry out the
work plan in such a manner as to serve the entire area of the State adequately.

(e) Any other matters which are critical to the
success of any programs administered by the Division.

1. The Division may make, undertake
commitments to make and participate with lending institutions in the making of
mortgage loans and may make temporary loans and advances in anticipation of mortgage
loans to finance the acquisition, construction, development, renewal,
redevelopment, rehabilitation or refinancing of residential housing, including,
without limitation, multifamily housing, within this state.

2. The Division may issue letters of
credit to finance the acquisition, construction, development, renewal,
redevelopment, rehabilitation or refinancing of residential housing, including,
without limitation, multifamily housing, within this state if, at the time a
letter of credit is issued, the Division has a credit rating within one of the
three highest rating categories of a nationally recognized rating agency.

NRS 319.200Terms and conditions of mortgage loan.Any
mortgage loan made by the Division must be secured in such manner, be repaid in
such period and bear interest at such rate or rates as are determined by the
Division.

(a) Invest in, purchase or make commitments to
purchase, and take assignments from lending institutions of mortgage loans and
promissory notes accompanying such mortgage loans, including mortgage loans or
participations with lending institutions in such promissory notes and mortgage
loans, for the construction, rehabilitation, purchase, leasing or refinancing
of residential housing within this state.

(b) Sell, at public or private sale, with or without
public bidding, any mortgage or other obligation held by the Division.

2. At or before the time of purchase, the
lending institution shall certify to the Division with respect to all mortgage
loans transferred to the Division:

(a) That the mortgage loans transferred to the
Division are for residential housing for eligible families within this state;
or

(b) That the proceeds of sale or its equivalent
will be reinvested in mortgage loans for residential housing for eligible
families within this state in an aggregate principal amount equal to the amount
of such sale proceeds.

1. Renegotiate, refinance or foreclose, or
contract for the foreclosure of, any mortgage in default;

2. Waive any default or consent to the
modification of the terms of any mortgage;

3. Commence any action to protect or
enforce any right conferred upon it by any law, mortgage, contract or other
agreement;

4. Bid for and purchase property upon
which it holds a mortgage at any foreclosure or at any other sale, or acquire
and take possession of any such property;

5. Operate, manage, lease, dispose of and
otherwise deal with such property in such manner as may be necessary to protect
the interest of the Division and the holders of its bonds, notes and other
obligations; and

6. Consent to any modification with
respect to rate of interest, time and payment of any installment of principal
or interest, security or any other term of any contract, mortgage, mortgage
loan, mortgage loan commitment, contract or agreement of any kind to which the
Division is a party, subject to any agreement with bondholders or noteholders.

(Added to NRS by 1975, 629)

NRS 319.230Loans to or purchase of securities from lending institutions;
collateral.

1. The Division may:

(a) Make loans to lending institutions under
terms and conditions requiring the proceeds of the loans to be used by the
lending institutions for the making of new mortgage loans for residential
housing;

(b) Purchase securities from lending institutions
under terms and conditions requiring that the securities finance mortgage loans
for residential housing;

(c) Require that loans to or securities purchased
from lending institutions be additionally secured as to payment of both principal
and interest by a pledge of and lien upon collateral security in such amounts
and consisting of such obligations, securities, and mortgage loans as the
Administrator determines to be necessary to assure the payment of the loans or
securities purchased and the interest on them as they become due.

2. The Division may require in the case of
any lending institution that any required collateral be lodged with a bank or
trust company, located either within or outside the State, designated by the
Division as custodian therefor. In the absence of this requirement, a lending
institution shall, if collateral is to be provided for the loan or securities
purchased, upon receipt of the proceeds from the Division, enter into an
agreement with the Division containing any provisions the Division deems
necessary to identify adequately and maintain and service the collateral and
providing that the lending institution shall hold the collateral as trustee for
the benefit of the Division and shall be held accountable as the trustee of an
express trust for the application and disposition thereof and the income
therefrom solely to the uses and purposes in accordance with the provisions of
the agreement. A copy of the agreement and any of its revisions or supplements,
which revisions or supplements may add to, delete from, or substitute items of
collateral pledged by the agreement, must be filed with the Secretary of State.
The filing shall be deemed to perfect the security interest of the Division in
the collateral and no filing, recording, possession or other action required
under any other law of this state is necessary, and the lien and trust for the
benefit of the Division so created is binding from the time made against all
parties having any prior unperfected claim or claims of any kind in tort,
contract or otherwise or any subsequent security interests against the lending
institution. The Division may also establish any additional requirements the
Administrator deems necessary with respect to the pledging, assigning, setting
aside or holding of the collateral and the making of substitutions for it or
additions to it and the disposition of income and receipts from it.

3. The Division may collect, enforce the
collection of and foreclose on any collateral securing its loan to or purchase
of securities from lending institutions and acquire or take possession of the
collateral and sell the collateral at public or private sale, with or without
public bidding, and otherwise deal with the collateral as may be necessary to
protect the interest of the Division in it, all subject to any agreement with
bondholders or noteholders.

(Added to NRS by 1975, 629; A 1977, 195; 1979, 1187)

NRS 319.235Financing rental sites for mobile homes and equipment for
conservation of energy in residential dwelling units.The
Division may finance, through the use of any power conferred on it by this
chapter:

1. The acquisition and improvement of real
property to be used for rental sites for mobile homes, whether or not the
mobile homes are to be financed pursuant to this chapter; and

2. The purchase and installation of
equipment and materials to be used in residential dwelling units for
conservation of energy or for use of energy from alternative sources,

Ê and any
related improvements appropriate to any of these purposes.

(Added to NRS by 1981, 1664)

NRS 319.240Lending fees and charges.The
Division may charge and collect such fees and charges as the Division may
establish from time to time for its lending and mortgage purchase programs.

(Added to NRS by 1975, 630)

NRS 319.250Insurance.The
Division may procure insurance against any loss in connection with its property
and other assets, including mortgages and mortgage loans, in such amounts and
from such insurers as it deems desirable.

1. There exists a shortage of decent, safe
and sanitary housing at rentals or prices which eligible families can afford
within the general housing market area as determined by the Administrator.

2. Private enterprise and investment have
been unable, without assistance, to provide an adequate supply of decent, safe
and sanitary housing in such housing market area at rentals or prices which
persons or families of low and moderate income can afford or to provide
sufficient mortgage financing for residential housing for occupancy by such
persons or families.

3. The proposed residential housing will
increase the supply or improve the quality of decent, safe and sanitary housing
for eligible families.

4. The residential housing to be developed
or assisted by the Division pursuant to the provisions of this chapter will be
of public use and will provide a public benefit.

5. The Division’s estimates of its
revenues from the financing of the residential housing, together with all
subsidies, grants or other financial assistance from governmental agencies or
other entities to be received in connection with the residential housing, will
be sufficient to pay the amount estimated by the Division as necessary for debt
service on its notes and bonds to be issued for the financing of the
residential housing.

(Added to NRS by 1975, 630)

NRS 319.265Requirements for regulations adopted by Division that establish
program for financing certain residential housing projects.

1. If the Division adopts regulations
which establish a program for the financing of projects, the regulations must not
include any provision which restricts or requires the deferral of more than 60
percent of the payment of profits and overhead to a developer of a project that
is:

(a) Constructed, developed, financed or insured
in whole or in part through any program established by the United States
Department of Housing and Urban Development; and

(b) Secured by a performance bond,

Ê except that
such regulations may establish the maximum amount of pro forma profit and
overhead for a developer of a project as a percentage of the appraised value of
the project.

2. As used in this section, “project”
means a housing facility for residential use which consists of two or more
dwelling units for occupancy by eligible tenants on a rental basis. The term
includes property which is to be leased, purchased or developed for sites for
multifamily housing and upon which the Division takes a security interest and
records a regulatory agreement, whether the Division issues bonds, a mortgage
loan or a letter of credit for the lease, purchase or development of the
multifamily housing.

NRS 319.267Duty of certain owners of residential housing to submit
quarterly report to Aging and Disability Services Division of Department of
Health and Human Services.

1. If an owner of residential housing that
is offered for rent or lease in this State and is:

(a) Accessible to persons with disabilities; or

(b) Affordable housing,

Ê has received
any loan, grant or contribution for the residential housing from the Federal
Government, the State or any public body, the owner shall, not less than
quarterly, report to the Aging and Disability Services Division of the
Department of Health and Human Services information concerning each unit of the
residential housing that is available and suitable for use by a person with a
disability.

2. The Department of Health and Human
Services shall adopt regulations to carry out the provisions of this section.

3. As used in this section, “affordable
housing” has the meaning ascribed to it in NRS
278.0105.

1. Subject to the limitation imposed by
subsections 4 and 5, the Division may issue its negotiable notes and bonds in
such principal amount as the Administrator determines to be necessary to
provide sufficient money for achieving any of its statutory purposes, including
the payment of interest on notes and bonds of the Division, establishment of
bond reserve funds and other reserves to secure the notes and bonds, and all
other expenditures of the Division necessary or convenient to carry out its
statutory purposes and powers.

2. Subject to any agreements with holders
of notes or bonds, all notes and bonds issued by the Division are special
obligations of the Division payable out of any revenues, money or other assets
of the Division pledged thereto.

3. In issuing the notes and bonds, the
Division acts as an agency or instrumentality of the State of Nevada.

4. Before any notes or bonds may be issued
pursuant to this section, except those issued for the purpose of refunding
outstanding notes or bonds, the Administrator must submit a copy of his or her
finding of the conditions prerequisite to the financing of residential housing
under this chapter to the State Board of Finance. If that Board approves, the
Division may proceed to issue its notes or bonds in the amount approved,
subject to the further limitation of subsection 5.

5. The aggregate principal amount of
outstanding bonds, notes and other obligations of the Division must not exceed
$5,000,000,000, of which $100,000,000 must be allocated to veterans who qualify
for loans under this chapter, exclusive of any bonds, notes or obligations
which have been refunded or which were issued at a time when the Division had a
credit rating within one of the three highest rating categories of a nationally
recognized rating agency. The establishment of this debt limitation does not
prohibit the Division from issuing additional bonds, notes or other obligations
if the debt limitation is subsequently increased.

1. The notes and bonds must be signed by
the Administrator, who may use a facsimile signature for this purpose, must
bear the date or dates and must mature at such a time or times as the
Administrator determines. The bonds may be issued as serial bonds payable in
annual installments or as term bonds or as a combination thereof. The notes and
bonds must bear interest at such a rate or rates, be in such denominations,
have such registration privileges, be executed in such a manner, be payable in
such a medium of payment, at such a place or places within or outside of the
State, and be subject to such terms of redemption as the Administrator
determines. The notes and bonds of the Division may be sold by the Division at
public or private sale at such a price or prices as the Administrator
determines except that no note, bond or other obligation issued by the Division
may be initially distributed to the public unless it has received a rating in
one of the three highest rating categories from a national rating service.

2. If the Administrator whose signature
appears on any notes or bonds or coupons ceases to act in that capacity before
the delivery of the notes or bonds, the signature of the Administrator is valid
and sufficient for all purposes as if the Administrator had remained in office
until their delivery.

3. The provisions of chapter 349 of NRS do not apply to any bonds,
notes or other obligations issued by the Division under the provisions of this
chapter.

NRS 319.290Notes and bonds: Pledges as security.The
Division in issuing any notes or bonds may contract with the holders thereof as
to:

1. Pledging all or any part of the
revenues of the Division to secure the payment of the notes or bonds subject to
such agreements with noteholders or bondholders as may then exist.

2. Pledging all or any part of the assets
of the Division, including mortgages and obligations securing such assets, to
secure the payment of the notes or bonds subject to such agreements with
noteholders or bondholders as may then exist.

3. The use and disposition of the gross
income from mortgages owned by the Division and the payment of principal of
mortgages owned by the Division.

4. The setting aside of reserves or
sinking funds and the regulation and disposition thereof.

5. Limitations on the purpose to which the
proceeds of sale of notes or bonds may be applied and pledging such proceeds to
secure the payment of the notes or bonds or of any issue thereof.

6. Limitations on the issuance of
additional notes or bonds, the terms upon which additional notes or bonds may
be issued and secured, and the refunding of outstanding or other notes or
bonds.

7. The procedure, if any, by which the
terms of any contract with noteholders or bondholders may be amended or
abrogated, the amount of notes or bonds the holders of which must consent
thereto, and the manner in which such consent may be given.

8. Limitations on the amount of moneys to
be expended by the Division for operating expenses of the Division.

9. Vesting in a trustee or trustees such
property, rights, powers and duties in trust as the Administrator may
determine, which may include any or all of the rights, powers and duties of the
trustee appointed by the bondholders pursuant to this chapter and limiting or
abrogating the right of the bondholders to appoint a trustee under this act or
limiting the rights, powers and duties of such trustee.

10. Defining the acts or omissions which
shall constitute a default in the obligations and duties of the Division to the
holders of the notes or bonds and providing for the rights and remedies of the
holders of the notes or bonds in case of such default, including as a matter of
right the appointment of a receiver, but such rights and remedies shall not be
inconsistent with the general laws of this state and the other provisions of
this chapter.

11. Any other matters, of like or
different character, which in any way affect the security or protection of the holders
of the notes or bonds.

Ê Any pledge
made by the Division is valid and binding from the time when the pledge is
made. The revenues, moneys or property so pledged and thereafter received by
the Division are immediately subject to the lien of such pledge without any
physical delivery thereof or further act, and the lien of any such pledge is
valid and binding as against all persons having claims of any kind in tort,
contract or otherwise against the Division, whether or not such persons have
notice thereof. Neither the proceedings of the Division relating to the bonds
or notes nor any other instrument by which a pledge is created need be
recorded.

(Added to NRS by 1975, 631)

NRS 319.300Bonds: Trust indentures as security.In
the discretion of the Administrator, bonds issued by the Division may be
secured by a trust indenture or trust indentures by and between the Division
and a corporate trustee, which may be any trust company or bank having the
power of a trust company within or outside this state. Such trust indenture may
contain such provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the Division in relation to the
exercise of its statutory powers and the custody, safeguarding and application
of all moneys. The Division may provide by such trust indenture for the payment
of the proceeds of the bonds and the revenues to the trustee under such trust
indenture or other depository, and for the method of disbursement thereof, with
such safeguards and restrictions as the Administrator may determine. All
expenses incurred in carrying out such trust indenture may be treated as part
of the operating expenses of the Division. Such trust indenture may limit or
abrogate the right of the holders of any bonds, notes or other obligations of
the Division to appoint a trustee under this chapter or limit the rights,
powers and duties of such trustee.

(Added to NRS by 1975, 632)

NRS 319.310Notes and bonds: Guarantees of payment.The
Division may procure or agree to the procurement of insurance or guarantees
from any governmental agency or from any private insurance company, of the
payment of any bonds or notes or any other evidences of indebtedness thereof
issued by the Division or by any lending institution, and may pay premiums on
such insurance.

(Added to NRS by 1975, 633)

NRS 319.320Notes and bonds: Redemption; remarketing or refunding.

1. The Division, subject to such
agreements with noteholders or bondholders as may then exist, may, out of any
money available therefor, purchase its notes or bonds to retire and cancel
them. The price must not exceed:

(a) The redemption price then applicable plus
accrued interest to the next interest payment thereon if the notes or bonds are
then redeemable; or

(b) The redemption price applicable on the first
date after the purchase upon which the notes or bonds become subject to
redemption plus accrued interest to that date if the notes or bonds are not
redeemable.

2. The Division may, in connection with
any remarketing or refunding of its notes or bonds or for any of its purposes,
acquire, or cause to be acquired, its notes or bonds without retiring and
cancelling them.

NRS 319.323Issuance of collateralized mortgage obligations; use of
proceeds; submission of findings to State Board of Finance.

1. The Division may, in addition to the
notes and bonds authorized by NRS 319.270, issue
from time to time its collateralized mortgage obligations or other negotiable
notes, bonds or obligations which may be secured by collateral consisting of,
otherwise secured in whole or in part by, or which may evidence loans or
participations or other interests in loans or participations. Any money
acquired from such an issuance must be applied by the Division to carry out its
purposes.

2. Any such collateralized mortgage
obligations or other notes, bonds or obligations are subject to the limitations
of subsection 5 of NRS 319.270 to the extent they
constitute a debt under generally accepted accounting principles.

3. Using the proceeds of collateralized
mortgage obligations or other available money, the Division may purchase or
otherwise acquire the loans or participations or other interests in loans or
participations which are collateral for, secure or evidence or are evidenced by
collateralized mortgage obligations or other notes, bonds or obligations issued
by the Division pursuant to this section. Such loans may be secured by
mortgages on real property outside of this state.

4. Before the issuance of any
collateralized mortgage obligations or other bonds, notes or obligations
pursuant to this section, the Administrator shall submit to the State Board of
Finance a copy of his or her findings that:

(a) The issuance of the obligation is in
furtherance of the purposes of the Division; and

(b) The estimate of the revenues and other
amounts to be derived from such financing is sufficient to pay the amount
estimated to be necessary for debt service on the collateralized mortgage
obligations or other notes, bonds or obligations issued pursuant to this
section.

Ê If that
Board approves, the Division may proceed to issue such collateralized mortgage
obligations or other notes, bonds or obligations in the amount approved.

NRS 319.325Division may provide that bonds, notes or loans be insured or
secured; payment of costs associated with insurance.The
Division may:

1. Provide that any bonds or notes issued
by the Division be insured or be secured by surety bonds, letters of credit not
issued by the Division, guaranties or other means of assuring repayment of such
bonds or notes.

2. Require that any loans, including a
mortgage loan, made or purchased by the Division be insured or be secured by
surety bonds, letters of credit not issued by the Division, guaranties or other
means of assuring repayment of such loans.

3. Pay the fees, charges, premiums and any
other costs associated with obtaining and maintaining insurance, or other means
of assuring repayment, from any available money of the Division including
premiums, fees and charges assessed against sponsors, lending institutions or
other participants or beneficiaries of the programs of the Division.

NRS 319.327Exemption of interest on Division’s bonds from federal income
taxation: Waiver; issuance of obligations not exempt from taxation.The Division may:

1. Waive, by such means as the Division
deems appropriate, any exemption from federal income taxation of interest on
the division’s bonds, notes or other obligations provided by 26 U.S.C. §§ 103
and 141 to 149, inclusive, and related portions of the Internal Revenue Code or
any succeeding code or other federal statute providing a similar exemption; or

2. Issue notes, bonds or other
obligations, the interest on which is not exempt from federal income taxation
or excluded from gross revenue for the purpose of federal income taxation, if
necessary to carry out the purposes of this chapter.

1. The Division may issue refunding
obligations to refund any obligations then outstanding which have been issued
under the provisions of this chapter, including the payment of any redemption
premium thereon and any interest accrued or to accrue to the date of redemption
of the obligations and for any statutory purpose of the Division. The issuance
of the obligations, the maturities and other details thereof, the rights of the
holders thereof, and the rights, duties and obligations of the Division in
respect to them are governed by the provisions of this chapter which relate to
the issuance of original obligations insofar as appropriate.

2. Refunding obligations issued as
provided in this section may be sold or exchanged for outstanding obligations
issued under this chapter and, if they are sold, the proceeds thereof may be
applied, in addition to any other authorized purposes, to the purchase,
redemption or payment of the outstanding obligations. Pending the application
of the proceeds of the refunding obligations, with any other available funds,
to the purpose for which they are issued, the proceeds may be invested in
direct obligations of, or obligations the principal of and the interest on
which are unconditionally guaranteed by, the United States of America, or
obligations of any agency or instrumentality of the United States, which mature
or which are subject to redemption by the holders thereof, at the option of
such holders, not later than the respective dates when the proceeds, together
with the interest accruing thereon, will be required for the purposes intended.

(Added to NRS by 1975, 633; A 1979, 1189)

NRS 319.340Bond reserve funds: Establishment; use; requirements.

1. The Division may establish one or more
bond reserve funds, and shall pay into each such bond reserve fund:

(a) Any money appropriated by the Legislature for
the purpose of the fund;

(b) Any proceeds of sale of notes or bonds to the
extent provided in connection with the issuance thereof; and

(c) Any other money which may be available to the
Division for the purpose of the fund from any other source or sources.

Ê All money
held in any bond reserve fund, except as otherwise expressly provided in this
chapter, must be used, as required, solely for the payment of the principal of
bonds secured in whole or in part by the fund or of the sinking fund payments
with respect to such bonds, the purchase or redemption of such bonds, the
payment of interest on such bonds or the payment of any redemption premium
required to be paid when the bonds are redeemed before maturity.

2. Money in such a fund must not be
withdrawn from the fund at any time in an amount that would reduce the amount
of the fund below the requirement established for that fund, except to pay when
due, with respect to bonds secured in whole or in part by that fund, principal,
interest, redemption premiums and sinking fund payments for the payment of
which other money of the Division is not available. Any income or interest
earned by or incremental to any bond reserve fund resulting from the investment
thereof may be transferred by the Division to other funds or accounts of the
Division and to the Account for Low-Income Housing created pursuant to NRS 319.500, to the extent that the amount of that
bond reserve fund is not reduced below the requirement for the fund.

NRS 319.350Bond reserve funds: Limitations.The
Division shall not at any time issue bonds, secured in whole or in part by a
bond reserve fund, if upon the issuance of those bonds, the amount in that bond
reserve fund will be less than the bond reserve fund requirement for that fund,
unless the Division at the time of issuance of those bonds deposits in that
fund from the proceeds of the bonds issued, or from other sources, an amount
which, together with the amount then in that fund, will not be less than the
bond reserve fund requirement for that fund. The bond reserve fund requirement,
as of any particular date of computation, is an amount of money, specified in
the proceedings of the Division authorizing the bonds with respect to which the
fund is established, necessary to provide adequate reserves for debt service on
the bonds.

(Added to NRS by 1975, 634; A 1979, 1190)

NRS 319.360Bond reserve funds: Purpose; status reports.The provision of bond reserve fund
requirements is designed to assure the continued operation and solvency of the
Division for the carrying out of its statutory purposes. The Administrator
shall, on or before the date of convening of any regular session of the Nevada
Legislature, make and deliver to the Governor, the President of the Senate and
the Speaker of the Assembly his or her report giving the status of this fund.

(Added to NRS by 1975, 635)

NRS 319.370Remedies of bondholders and noteholders.

1. If the Division defaults in the payment
of principal of or interest on any bonds or notes issued under this chapter
after it is due, whether at maturity or upon call for redemption, and such
default continues for a period of 30 days, or if the Division fails or refuses
to comply with the provisions of this chapter or defaults in any agreement made
with the holders of an issue of its bonds or notes, the holders of 25 percent
in aggregate principal amount of the bonds or notes of such issue then
outstanding, by instrument or instruments filed in the Office of the Secretary
of State and proved or acknowledged in the same manner as a deed to be
recorded, may appoint a trustee to represent the holders of such bonds or notes
for the purposes provided in this section.

2. The trustee may, and upon written
request of the holders of 25 percent in principal amount of such bonds or notes
then outstanding shall, in his, her or its own name:

(a) Enforce the right of the bondholders or
noteholders to require the Division to collect interest and amortization
payments on the mortgages held by it adequate to carry out any agreement as to,
or pledge of, such interest and amortization payments, and to require the
Division to carry out any other agreements with the holders of such bonds or
notes and to perform its duties under this act.

(b) Enforce the right of the bondholders or
noteholders to collect and enforce the payment of principal of and interest due
or becoming due on loans to lending institutions and collect and enforce any
rights in respect to collateral securing such loans or sell such collateral, so
as to carry out any contract as to, or pledge of revenues, and to require the
Division to carry out any contract as to, or pledge of revenues, and to require
the Division to perform its duties under this chapter.

(c) Bring suit upon all or any part of such bonds
or notes.

(d) By civil action, require the agency to
account as if it were the trustee of an express trust for the holders of such
bonds or notes.

(e) By civil action, enjoin any acts or things
which may be unlawful or in violation of the rights of the holders of such
bonds or notes.

(f) Declare all such bonds or notes due and
payable, and if all defaults are made good then with the consent of the holders
of 25 percent of the principal amount of such bonds or notes then outstanding,
to annul such declaration and its consequences.

(g) Enforce any other right of the bondholders or
noteholders conferred by law or by the proceedings of the Division authorizing
the issuance of the bonds or notes.

3. The trustee shall, in addition to the
powers listed in subsection 2, have all the powers necessary or appropriate for
the exercise of any functions specifically set forth in this section or
incident to the general representation of bondholders or noteholders in the
enforcement and protection of their rights.

4. Before declaring the principal of bonds
or notes due and payable, the trustee shall give 30 days’ notice in writing to the
Governor, to the Administrator and to the Attorney General of this state.

5. The District Court of the First
Judicial District has jurisdiction of any suit, action or proceeding by the
trustee on behalf of bondholders or noteholders.

(Added to NRS by 1975, 635)

NRS 319.380Pledge against impairment of holders’ rights and remedies;
credit of State not pledged.

1. The State of Nevada hereby pledges to
and agrees with the holders of any notes or bonds issued under this chapter
that the State will not limit or alter the rights vested in the Division by
this chapter to fulfill the terms of any agreements made with such holders or
in any way impair the rights and remedies of such holders until such notes and
bonds, together with the interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in connection with any
action or proceeding by or on behalf of such holders, are fully met and
discharged. The Division may include this pledge and agreement of the State in
any agreement with the holders of such notes or bonds.

2. Obligations issued under the provisions
of this chapter, including letters of credit issued by the Division, do not
constitute a debt, liability or obligation of this state or of any political
subdivision thereof, or a pledge of the faith and credit of this state or of
any political subdivision thereof, but are payable solely from the revenues or
assets of the Division. Each obligation, including a letter of credit, issued
under this chapter must contain on the face thereof a statement to the effect
that the Division is not obligated to pay the obligation or the interest
thereon except from the revenues or assets pledged therefor and that neither
the faith and credit nor the taxing power of this state or of any political
subdivision thereof is pledged to the payment of the principal of or the
interest on the obligation.

1. The notes and bonds of the Division are
legal investments in which all public officers and public bodies of the State,
its political subdivisions, all municipalities and municipal subdivisions, all
insurance companies and associations and other persons carrying on an insurance
business, all banks, savings and loan associations and trust companies, all
administrators, guardians, executors, trustees and other fiduciaries, and all
other persons who are authorized on or after July 1, 1975, to invest in bonds
or in other obligations of this state, may properly and legally invest funds,
including capital, in their control or belonging to them. The notes and bonds
are securities which may properly and legally be deposited with and received by
all public officers and public bodies of the State or any agency or political
subdivision of the State and all municipalities and public corporations for any
purpose for which the deposit of bonds or other obligations of this state is
authorized by law on and after July 1, 1975, and may be used as collateral to
secure any deposit of public moneys.

2. The notes and bonds of the Division are
securities within the meaning of the Uniform Commercial Code—Investment
Securities.

(Added to NRS by 1975, 636)

ACCOUNT FOR LOW-INCOME HOUSING

NRS 319.500Creation; investment of money; claims.

1. There is hereby created in the State
General Fund the Account for Low-Income Housing, to be administered by the
Division. All money that is collected for the use of the Account from any
source, including pursuant to a specific statute, tax, legislative
appropriation, gift or grant, or from interest earned on specified public or
private accounts, must be deposited in the Account.

2. The money in the Account must be
invested as provided in chapters 355 and 356 of NRS. The interest and income earned on
the money in the Account, after deducting any applicable charges, must be
credited to the Account. All claims against the Account must be paid as other
claims against the State are paid.

1. Money deposited in the Account for
Low-Income Housing must be used:

(a) For the acquisition, construction or
rehabilitation of housing for eligible families by public or private nonprofit
charitable organizations, housing authorities or local governments through
loans, grants or subsidies;

(b) To provide technical and financial assistance
to public or private nonprofit charitable organizations, housing authorities
and local governments for the acquisition, construction or rehabilitation of
housing for eligible families;

(c) To provide funding for projects of public or
private nonprofit charitable organizations, housing authorities or local
governments that provide assistance to or guarantee the payment of rent or
deposits as security for rent for eligible families, including homeless
persons;

(d) To reimburse the Division for the costs of
administering the Account; and

(e) In any other manner consistent with this
section to assist eligible families in obtaining or keeping housing, including
use as the State’s contribution to facilitate the receipt of related federal
money.

2. Except as otherwise provided in this
subsection, the Division may expend money from the Account as reimbursement for
the necessary costs of efficiently administering the Account and any money
received pursuant to 42 U.S.C. §§ 12701 et seq. In no case may the Division
expend more than $40,000 per year or an amount equal to 6 percent of any money
made available to the State pursuant to 42 U.S.C. §§ 12701 et seq., whichever
is greater. In addition, the Division may expend not more than $175,000 per
year from the Account to create and maintain the statewide low-income housing
database required by NRS 319.143. Of the remaining
money allocated from the Account:

(a) Except as otherwise provided in subsection 3,
15 percent must be distributed to the Division of Welfare and Supportive
Services of the Department of Health and Human Services for use in its program
developed pursuant to 45 C.F.R. § 233.120 to provide emergency assistance to
needy families with children, subject to the following:

(1) The Division of Welfare and Supportive
Services shall adopt regulations governing the use of the money that are
consistent with the provisions of this section.

(2) The money must be used solely for
activities relating to low-income housing that are consistent with the
provisions of this section.

(3) The money must be made available to
families that have children and whose income is at or below the federally
designated level signifying poverty.

(4) All money provided by the Federal
Government to match the money distributed to the Division of Welfare and
Supportive Services pursuant to this section must be expended for activities
consistent with the provisions of this section.

(b) Eighty-five percent must be distributed to
public or private nonprofit charitable organizations, housing authorities and
local governments for the acquisition, construction and rehabilitation of
housing for eligible families, subject to the following:

(1) Priority must be given to those
projects that qualify for the federal tax credit relating to low-income
housing.

(2) Priority must be given to those
projects that anticipate receiving federal money to match the state money
distributed to them.

(3) Priority must be given to those
projects that have the commitment of a local government to provide assistance
to them.

(4) All money must be used to benefit
families whose income does not exceed 60 percent of the median income for
families residing in the same county, as defined by the United States
Department of Housing and Urban Development.

(5) Not less than 15 percent of the units
acquired, constructed or rehabilitated must be affordable to persons whose
income is at or below the federally designated level signifying poverty. For
the purposes of this subparagraph, a unit is affordable if a family does not
have to pay more than 30 percent of its gross income for housing costs,
including both utility and mortgage or rental costs.

(6) To be eligible to receive money
pursuant to this paragraph, a project must be sponsored by a local government.

3. The Division may, pursuant to contract
and in lieu of distributing money to the Division of Welfare and Supportive
Services pursuant to paragraph (a) of subsection 2, distribute any amount of
that money to private or public nonprofit entities for use consistent with the
provisions of this section.

NRS 319.520Regulations concerning distribution and use of money in Account;
requirements for recipient of money.

1. The Administrator shall consult with
representatives of housing authorities, organizations of persons with low
income, providers of housing, financial institutions and other persons
interested in the provision of low-income housing, and adopt regulations
establishing:

(a) Criteria for the distribution and use of
money from the Account for Low-Income Housing; and

(b) Procedures for the Division and the local
governments that receive money pursuant to NRS 319.510
to monitor the use of money from the Account and to enforce the provisions of
this section and NRS 319.500 and 319.510.

Ê The
regulations must be designed to maximize the efficient use of money in the
Account and to promote the participation and assistance of local governments.

2. A recipient of money from the Account
shall comply with the regulations of the Administrator and provide such reports
to the Division and the local governments that receive money pursuant to NRS 319.510 upon the use of the money as the
Administrator requires.

NRS 319.900False statements; penalty.Any
person who knowingly makes or causes to be made, either directly or indirectly,
or through any agency whatsoever, any false statement in writing concerning an
applicant’s income, employment, financial position, the size of the applicant’s
family, the intent of the applicant to occupy premises as his or her primary
residence or the cost of the residence, with intent that the statement be
relied upon for the purpose of obtaining financial assistance from the Division
is guilty of a gross misdemeanor.

(Added to NRS by 1981, 877; A 1989, 1215)—(Substituted
in revision for NRS 319.400)